RBS 2007 Annual Report Download - page 180

RBS Group • Annual Report and Accounts 2007
178
Notes on the accounts continued
Financial statements
Ordinary shares
In May 2007, the company capitalised £1,576 million of its
share premium account by way of a bonus issue of two new
ordinary shares of 25p each for every one ordinary share held
by shareholders at close of business on 4 May 2007.
In addition, the following issues of ordinary shares were made
during the year ended 31 December 2007:
(a) 530.6 million ordinary shares issued to former shareholders
of ABN AMRO; and
(b) 19.1 million ordinary shares following the exercise of
options under the company’s share schemes.
Consideration of £77 million was received on the issue of
ordinary shares for cash.
During the year ended 31 December 2007, options were
granted over 44.8 million ordinary shares under the company’s
executive and sharesave schemes. At 31 December 2007,
options granted under the company’s various schemes,
exercisable up to 2017 at prices ranging from 260p to 700p
per share, were outstanding in respect of 188.7 million
ordinary shares.
In addition, options granted under the NatWest executive
scheme were outstanding in respect of 1 million ordinary
shares exercisable up to 2009 at prices ranging from 228p to
308p per share.
Employee share trusts purchased 10.8 million ordinary shares
at a cost of £65.3 million and awarded 19.8 million ordinary
shares on receipt of £79 million on the exercise of awards
under employee share schemes.
The employee share trusts incurred costs of £0.4 million in
purchasing the company’s ordinary shares.
Preference shares
In January 2007, the company redeemed the 8 million Series
E, the 10 million Series G and the 16 million Series K, non-
cumulative preference shares of US$0.01 each at US$25 per
share.
In June 2007, the company issued 38 million Series S non-
cumulative preference shares of US$0.01 at US$25 each, the
net proceeds being US$920 million.
In September 2007, the company issued 64 million Series T
non-cumulative preference shares of US$0.01 at US$25 each,
the net proceeds being US$1,550 million.
In October 2007, the company issued:
(a) 26,000 Series 3 non-cumulative preference shares of 0.01
at 50,000 each, the net proceeds being 1,287 million;
(b) 750,000 Series 1 non-cumulative preference shares of £1 at
£1,000 each, the net proceeds being £742 million; and
(c) 15,000 Series U non-cumulative preference shares of
US$0.01 at US$100,000 each, the net proceeds being
US$1,485 million.
The costs of issue and discounts allowed on preference
shares issued during the year were £64 million.
Under IFRS certain of the Group’s preference shares are
classified as debt and are included in subordinated liabilities
on the balance sheet.
Other securities
In October 2007, the company issued the following
subordinated securities in the legal form of debt that are
classified as equity under IFRS:
(a) US$1,600 million fixed/floating rate preferred capital
securities, the net proceeds being US$1,584 million; and
(b) CAD600 million innovative tier 1 bonds, the net proceeds
being CAD594 million.
These securities entitle the holders to interest which may be
deferred at the sole discretion of the company. Repayment of
the securities is at the sole discretion of the company on giving
between 30 and 60 days notice.
26 Share capital (continued)